Fuel is fast challenging vehicle depreciation as the single biggest fleet cost. So organisations need strategies to keep budgets in check
Sasu Mitra, Development Leader, Laing O’Rourke  While the ‘greenest’ mile is the one that is never driven, there are significant measures that decision-makers can take to reduce their operating budgets - and specifically their fuel bills. Recent research by the Energy Saving Trust among 600 English based private and public sector organisations running 20+ vehicles revealed that large organisations with large fleets are in the vanguard of environmental transport sustainability.
Simultaneously, the research highlights that smaller companies are in the ‘green’ fleet slow lane with many needing help and information to focus on implementing emission-reducing vehicle strategies.
Within these companies 46 per cent of directors hold responsibility for company car policy, so implementing green practices and policies should be a priority for any board member looking to reduce costs.
However, despite the savings available, the research reveals that although the majority of organisations regard environmental sustainability as a top priority, 50 per cent of organisations do not have a formal environmental fleet policy in place. And, remarkably, even those that do frequently fail to ensure it embraces vehicle use. The green route to financial savings
Inevitably the lower a car’s CO2 figure the better its fuel consumption. Not only will this result in fuel savings, but with company car tax, Vehicle Excise Duty, benefit in kind and writing down allowances all linked to emissions, there are financial savings for companies and drivers.
EST has calculated that if all organisations in the UK collectively switched to ‘greener’ fleet management, they could save almost £3 billion a year through reduced tax and fuel bills. Typically, a company running 100 vehicles can expect to save £90,000 by implementing a range of best practice recommendations emanating from an EST Green Fleet Review.
With the economy slowing, such financial savings cannot be ignored so a wholesale review of company car choice lists is one of the most important actions that bosses can take in ‘going green’.
While engineering advances are reducing vehicle emissions, encouraging drivers to adopt ‘green’ driving habits - known as smarter-driving - and focusing on smooth acceleration and braking by anticipating the road ahead will reduce fuel use as well as putting fleets on the right side of health and safety-related at-work driving legislation.
With fuel accounting for up to 30 per cent of motoring costs - and rising – smarter-driving makes commercial sense, and organisations can realistically expect to cut fuel bills by at least 10 per cent. Laing O’Rourke - making changes and saving money
Fuel bills at Laing O’Rourke, the UK’s largest private construction company, top £12 million per annum. Working with the EST it is looking to cut those by up to 10 per cent through improved mileage and fuel data gathering, encouraging the uptake of low emission vehicles and the use of travel alternatives to the car.
With a 4,500-strong fleet travelling more than 74 million miles a year the environmental benefits are potentially huge and development leader Sasu Mitra said: “The EST helped provide a policy-setting focus which has ensured that senior management now has a high level of awareness of the long-term benefits of running a green fleet and the potential for reaping those rewards.” Filling the information gaps
Typically, where transport is a core part of a business’s infrastructure and one of its biggest overheads, fleet management is viewed as a key focus for financial savings. However, smaller fleets and those where transport is not core have a more laissez faire attitude to efficient and effective fleet management.
That attitude could be because policy decision-makers say they frequently find themselves in a cul-de-sac when searching for information to help them introduce low emission vehicles and trim fuel bills.
To overcome perceived knowledge gaps, the EST provides a free one-stop shop to help organisations, irrespective of fleet size, to implement environmentally-friendly vehicle strategies.
Organisations with 50+ vehicles under 3.5 tonnes can benefit from a free Laing O’Rourke-style Green Fleet Review. Undertaken by EST fleet consultants, it provides organisations with an action plan to cut their transport carbon footprint and simultaneously save money.
For sub-50 vehicle fleets, free telephone advice is available and organisations can register to receive our monthly email newsletter to keep themselves at the cutting edge on ‘greener’ fleet management topics. 10 tips for safer, greener, stress free driving - Check your revs - change up before 2,500rpm (petrol) and 2,000rpm (diesel).
- Anticipate road conditions and drive smoothly, avoiding sharp acceleration and heavy braking. This saves fuel and reduces accident rates.
- Use air conditioning sparingly as it significantly increases fuel consumption.
- Drive away immediately when starting from cold - idling to heat the engine wastes fuel and causes rapid engine wear.
- Remove roof rack when not in use – they increase drag significantly.
- Avoid short journeys - a cold engine uses almost twice as much fuel and catalytic converters can take five miles to become effective.
- Stick to speed limits and make your fuel go further – driving at 85mph rather than 70mph uses 25 per cent more fuel.
- Plan your journeys - to avoid congestion, roadworks and getting lost.
- Check your tyre pressure regularly – underinflated tyres are dangerous and can increase fuel consumption by up to 3 per cent.
- If you’re stuck in a jam, switch off – cutting the engine will save fuel and stop emissions.
For more information
Please contact the Transport Advice Hotline on 0845 602 1425 or go to: www.energysavingtrust.org.uk/fleet |
